Garry Evans, Asia strategist at HSBC in Hong Kong, in a note last week said that “history shows that bear markets end when monetary policy is eased aggressively and the banking system is sorted. The former has now happened; the latter may soon. There seem more upside than downside for stocks.”

“We understand the taboo in the U.S. on nationalizing banks, but we see the chances of a comprehensive bailout plan as quite high now,” Mr. Evans added.